Tax treatment for non-KYC crypto

 Author: AriATO(Community Support)Community Support

ATO Certified Response24 Jan 2023

Hi @sunshine29831

You need to return capital gain and losses you earn from trading through a non- KYC crypto exchange regardless of whether it is trading legally or illegally under Australian laws. The records you need to keep if you are using fiat currency include:

• date of each transaction, the type of crypto assets purchased or sold and their market values.
• what the transaction is for and who the other party is (this can just be their crypto asset address).
• a transfer note from the financial institution you use to make the purchase.
• a financial institution statement which shows that a deposit has been made when you sold.
• other information that shows that the correct amount of CGT has been returned.

if you are using a wallet or an account for trading through a non-KYC, the records you need to provide include:

• you control the accounts or wallet.
• link between the buy and sell transactions by the dates the transactions were carried out.
• other information that shows that the correct amount of CGT has been returned.

As crypto can be volatile, keeping your records safe are important.  For more information check out Crypto asset records you should keep (QC 69955).

For more on the legality of a crypto exchange go to the ASIC or AUSTRAC websites.